Strong

Base

Million

<p>Since its inception in July 2023, Coinbase’s Layer-2 network Base has experienced significant growth and adoption within the decentralized finance (DeFi) sector. This expansion has positioned Base as a key contributor to Coinbase’s overall profits.</p> 
<h3 id="coinbase-base-contributes-26-million-in-profits">Coinbase Base Contributes $26 Million In Profits</h3> 
<p>Coinbase Base, an Ethereum-based Layer-2 solution, has witnessed strong growth in transaction volumes and fees amid a large number of project listings happening on the platform this year in 2024. The demand for this Layer-2 network is so high that <a href="https://coingape.com/coinbase-congestion-recorded-on-base-network-triggers-high-fees/" target="_blank" rel="noopener">Base</a> also faced a situation of network congestion, a few weeks ago.</p> 
<p>However, this surge in the gas fee has led to strong earnings for Coinbase. As per the CoinShares <a href="https://coinshares.com/research/bi-weekly-digest" target="_blank" rel="noopener">report</a>, Coinbase would be taking 85% of the Base network profits while the remaining 15% will go to competitor Optimism.</p> 
<p>Amid this stellar growth, Base has eaten into the market share of its competitors like <a href="https://coingape.com/coinbase-l2-base-outshines-arbitrum-in-transaction-count/" target="_blank" rel="noopener">Arbitrum</a> and Optimism. Citing data from Dune Analytics, CoinShares reports that this uptick in Layer-2 Base network utility shall contribute to USD 26 million in net profit for Coinbase ever since its inception to now, April 15, 2024. It also provides Coinbase with a good diversification from its traditional brokerage business.</p> 
<p>Furthermore, Coinbase seeks to continuously innovate the Base platform and make it as economically viable as possible. One significant update that Coinbase plans to bring to the Layer-2 Base network includes the ability to store users’ <a href="https://coingape.com/coinbase-to-store-users-usdc-balances-on-base-network/" target="_blank" rel="noopener">USDC balance</a> within the platform. This strategic decision allows the company to efficiently handle and safeguard customer funds, benefiting from reduced fees and faster settlement times.</p> 
<h3 id="okx-pitches-a-new-competition">OKX Pitches A New Competition</h3> 
<p>On Monday, crypto exchange OKX announced the public mainnet launch of its Ethereum-based layer-2 scaling network, X Layer. This advancement positions OKX among the renowned blockchain platforms offering users faster and more cost-effective transactions compared to Ethereum’s mainnet.</p> 
<p>X Layer is constructed using the Polygon CDK and is among the pioneering networks to utilize Polygon’s AggLayer functionality.</p> 
<p>With the introduction of X Layer, OKX enters direct competition with Coinbase and its Layer-2 solution, Base. One notable distinction between Base and Layer X is the latter’s incorporation of zero-knowledge (ZK) proofs.</p> 
<p>The post <a href="https://coingape.com/coinbase-layer-2-network-base-brings-usd-26-million-profit-strong-outlook-ahead/">Coinbase Layer-2 Network Base Contributes $26 Million Profit, Strong Outlook Ahead</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

Coinbase Layer-2 Network Base Contributes $26 Million Profit, Strong Outlook Ahead

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